This is a best prospect industry sector for this country. Includes a market overview and trade data.
Algeria is the largest country in both Africa and the Arab world with a total landmass of 919,600 square miles. The country is rich in natural resources and is an OPEC member. Algeria has the tenth-largest proven reserves of natural gas in the world, is the sixth-largest gas exporter and has the third largest reserves of shale gas. It also ranks sixteenth in proven oil reserves. Thanks to hydrocarbon revenues, Algeria has a cushion of approximately $75 billion in foreign currency reserves, though the balance has fallen significantly since 2014 because of lower oil and gas prices. In addition, Algeria's external debt is extremely low at about two percent of GDP. Algeria is still largely underexplored (fewer than 20 wells per 10,000 square miles) and there are opportunities for foreign firms to invest in joint ventures to find new deposits.

To attract additional foreign investment the GoA is drafting a new hydrocarbons law. The new law aims to make Algeria more competitive by easing taxes, simplifying license procedures and shortening the agreement timeframe.

State-owned national oil company Sonatrach, the largest company in Africa, owns roughly 80 percent of total hydrocarbon production in Algeria, while International Oil Companies (IOCs) account for the remaining 20 percent.

Algeria possesses 20 trillion cubic meters of technically recoverable shale gas, representing 707 Tcf of technically recoverable shale gas, the third-largest quantity of untapped shale gas resources in the world. Sonatrach has signed several cooperation agreements with IOCs to develop unconventional resources, with a focus on shale gas horizontal drilling, but also to assess technical and commercial feasibility.

Along with gas, Algeria is a large oil producer with 12.2 billion barrels of proven oil reserves. The country exports 540,000 b/d of its total production of about 1.1 million b/d. All proven oil reserves are held onshore, though offshore exploration is in the early stages.

With most of Algerian hydrocarbons derived from mature and depleting fields, and in line with its ambition to boost output, an important focus is being placed on the need to optimize production, notably through enhanced recovery technology. To that end, Sonatrach is looking to increase partnership with foreign investors for quicker technology transfer.  

According to Sonatrach, about two-thirds of Algerian territory remains unexplored or largely underexplored. Most of these areas are in the north, the deep south and offshore.

Despite the sharp decline in oil prices since July 2014, Sonatrach has declared that it will maintain its investment plans of 18 to 23 billion USD in annual outlays, with a focus on upstream exploration, production and oil reservoir activities.

In addition, Sonatrach is pursuing offshore development, focused on two large geographical areas that look promising based on seismic data.

Algeria’s domestic electric power consumption has grown steadily, with official estimates of demand growth vary between 8-20% annually since 2010. The GoA has brought additional capacity on line to keep up with the pace of domestic demand. To satisfy domestic energy demand, Algeria is extremely reliant on hydrocarbons, nearly exclusively natural gas. The government plans to introduce renewable energy into the local power market to save volumes of natural gas for export to finance the national economy. As a result, the Renewable Energy and Energy Efficiency Program adopted in 2011, aims to produce up to 40 percent of domestic power needs from renewable energy sources by 2030. Due to Algeria’s sunny climate, the Renewable Energy program places a large emphasis on solar power as its potential is greater than that of wind, biomass, geothermal, or hydropower. The program’s stated goal is to achieve 37 percent of national electricity production from solar energy by 2030, with three percent coming from wind-powered plants.
Sub Sector Best Prospects

  • Oil and gas 3D seismic exploration technologies
  • Oil and gas rig and well services technologies
  • Real time oil and gas well data collection and data treatment
  • Reservoir management technologies
  • Oil and gas solid waste management technologies
  • Smart grid distribution management
  • Photovoltaic and solar energy technologies


In January 2013, the parliament approved the introduction of fiscal incentives to attract foreign companies and encourage new ventures, particularly in the offshore exploration of shale gas. The Algerian government has stressed the importance of involving foreign partners to increase oil and gas reserves and explore new territories. Algeria opened a new set of oil and gas fields to international bidders in January 2014. The tender, launched by Algeria's state-owned oil licensing body Alnaft, covered 33 concessions. However, only five were awarded.

The renewable energy program aims to install 22,000 MW of power generating capacity from renewable sources by 2030, of which 10,000 MW would be available for export. Installed renewable power capacity reached roughly 360 MW by the end of 2018.

For more information about opportunities in the energy sector, please contact U.S. Commercial Specialist Kamal Achab at +213-770-082-093 or

Additional Resources

Ministry of Energy
Address: Tour A, Val d’Hydra, Ben Aknoun, BP 229, Alger, Algérie. Code Postal 16028.
Phone: +213 21 488 526 / +213 21 488 522 / +213 21 488 531; Fax: +213 21 488 557

National Agency for the Promotion and the Rationalization of Energy Use (APRUE)
Address: 02, rue Chenoua, BP 265 Hydra. Alger. Algérie
Phone: +213 21 60 31 32 and 60 24 46
Fax: +213 21 69 26 70

Gas and Electricity Regulatory Commission (CREG)
Address: Tour Val d’Hydra, Ben Aknoun, BP 229, Alger, Algérie. Code Postal 16028
Phone: +213(0)21 488 148
Fax: +213(0)21 488 400
Email :

National Agency for Hydrocarbon Resources Valorization (ALNAFT)
Address: Tour Val d’Hydra, Ben Aknoun, BP 229, Alger, Algérie. Code Postal 16028
Phone: +213(0)21 488 542 and +213(0)21 488 538
Fax: +213(0)21 488 392

Hydrocarbons Regulatory Authority (ARH)
Address: Tour Val d’Hydra, Ben Aknoun, BP 229, Alger, Algérie. Code postal : 16028
Phone: +213(0)21 488 167 and +213(0)21 488 183
Fax: +213(0)21 488 315

Further resources for the Algerian energy sector can be found at the websites for Sonatrach  and Sonelgaz.


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